CapitaLand Investment Limited  ( CLI ) has achieved final close of the CapitaLand Asia Pacific Credit Programme II ( ACP II ), the second regional fund under its flagship real estate credit series, raising US$320 million in total equity commitments and adding approximately US$600 million to its funds under management.

The fund’s successful closing comes amid tightening bank lending conditions and rising demand for flexible capital solutions. It is further supported by positive outlook in the Asia-Pacific real estate credit market.

Fundraising in the region has reached US$11.2 billion between 2020 and 2024, up more than 40% over the previous five-year period. In Asia-Pacific, real estate-backed lending is under-penetrated, accounting for just 6% of total financing, compared with 21% in Europe and 41% in the United States, presenting an early mover advantage, according to CLI.

“Real estate-backed credit is central to CLI’s credit platform and is structurally differentiated from private corporate lending,” says Kishore Moorjani, CLI’s chief executive officer, alternatives, private funds.

“Our disciplined focus on senior secured, asset-backed investments positions us away from the challenges currently facing the wider credit sector. The successful close of ACP II is testament to CLI’s position as a partner of choice in APAC. CLI stands out with our deep asset-level expertise and strong operating capabilities. We remain committed to scale our asset-light fund management platform.”

Diverse investors

ACP II secured equity commitments from a diverse group of capital partners, predominantly in Asia-Pacific. These include a balanced mix of new and existing investors such as insurers, financial institutions, and family offices. CLI holds a 20% sponsor commitment in ACP II, aligning its interests with investors.

The fund is allocated to five first mortgage loans for logistics, office and living assets located in Sydney, Australia, and in the Seoul Metropolitan Area in South Korea, markets where CLI has an established presence.

CLI, together with Wingate, has deployed over S$10 billion (US$7.83 billion in credit investments  across Asia-Pacific to date. CLI’s acquisition of Wingate, one of Australia’s largest private credit investment managers,  has broadened the firm’s distribution network  across  high-net-worth investors and institutional platforms, further reinforcing its position as a leading real estate credit player in the region.

The final close of ACP II follows the full realization of ACP I, the firm’s inaugural credit programme.  The A$265 million ( approximately US$186 million )  fund  financed two prime mixed-use developments in Melbourne and Adelaide.

In South Korea, CLI’s 180 billion won ( US$120 million ) Korea Credit Programme, a partnership with Korea Investment & Securities, has been fully deployed across diversified asset classes in Seoul.